AkzoNobel to concentrate on retaining price increases, no big M&A for 2023 – CEO

AkzoNobel intends to attempt to drive earnings growth for 2023 by retaining price hikes as raw material cost pressures recede, with cost savings precluding any substantial acquisitions or share buy-backs for the year, the CEO at the Netherlands-headquartered paints and coatings major said.

The company has largely managed to stay ahead of raw materials cost increases over the last two years, successfully hiking prices by €2bn since the start of 2021 in the face of €1.9bn increases in expenses.

Raw materials remained a headache in the closing months of the 2022, representing a €209m headwind when combined with freight costs, exacerbated by a €98m impact from lower volumes, resulting in a substantial drop in profits year on year.

AkzoNobel Q4/2022 financials

€ millions	Q4 2022	Q4 2021	% Change	2022	2021	% Change
Revenue	2,606.0	2,403.0	8.4	10,846.0	9,587.0	13.1
Operating income	103.0	205.0	-49.8	708.0	1,118.0	-36.7
Net income	8	187.0	-95.7	352.0	829.0	-57.5

Pricing for feedstocks is likely to continue to rise at a slower level in the first quarter of 2023, with AkzoNobel forecasting additional costs of €80m-110m for January-March, but levels are expected to subside from spring onwards.